Cash runway first: the restructure decision directors put off too long

Waiting too long makes the choice smaller

A restructure is hardest to do when the bank account is already bare. At that point, directors are often reacting to supplier pressure, payroll panic and tax arrears at the same time. Business.gov.au lists small business restructuring alongside liquidation, voluntary administration and receivership as the main company insolvency options, which is a reminder that timing changes the menu available to you. ([business.gov.au](https://business.gov.au/exiting/bankruptcy-and-insolvency/insolvency-for-companies?utm_source=openai))

The practical issue is control. If you still have cash, records and a trading relationship with key creditors, you can still shape the discussion. Once those things disappear, the business can end up responding to other people’s deadlines instead of setting its own. That is why the first question is not whether the business is worth saving, but whether it still has room to choose. ([business.gov.au](https://business.gov.au/exiting/bankruptcy-and-insolvency/insolvency-for-companies?utm_source=openai))

Count the weeks, not the worry

Start with a plain cash runway check. Take the cash in the bank, add money you reasonably expect to collect, then subtract the unavoidable payments due each week, including wages, BAS, rent, finance and critical suppliers. The result tells you how many weeks you have before the pressure becomes a crisis. Business.gov.au’s debt and cash flow guidance points to the same discipline: know what is due and what can move. ([business.gov.au](https://business.gov.au/expertise-and-advice/Small-Business-Debt-Helpline?utm_source=openai))

Do not rely on a feeling that business will improve next month. Write the numbers down and separate essentials from everything else. If the answer is three weeks, you need to act as if you have three weeks, not thirty days of hope. That figure is the base for every other decision, because it shows whether there is time to restructure properly or only time to contain damage. ([business.gov.au](https://business.gov.au/expertise-and-advice/Small-Business-Debt-Helpline?utm_source=openai))

Source: Official guidance

List the options while the file is still clean

Once the runway is clear, list the options available now, not the ones you might wish were available later. For some companies that means a formal restructure, for others it means negotiating payment arrangements, looking at a different funding structure, or stepping back before the loss deepens. Business.gov.au says restructuring can affect registrations and tax obligations, so the file needs to match the option you choose. ([business.gov.au](https://business.gov.au/planning/business-structures-and-types/restructuring?utm_source=openai))

If you are looking at small business restructuring, check eligibility before you spend time polishing a proposal. The legislation says the company’s total liabilities to pay admissible debts and claims must not exceed $1 million on the day the restructuring begins. The regulations also require employee entitlements payable to be paid and tax lodgements to be up to date or substantially compliant. ([legislation.gov.au](https://www.legislation.gov.au/F2001B00274/2025-07-01/2025-07-01/text/original/epub/OEBPS/document_1/document_1.html?utm_source=openai))

Talk to creditors before they set the tone

The next move is early contact with the creditors who can shape the week ahead. That usually means the ATO, major suppliers, the landlord and finance providers. Business.gov.au says the Small Business Debt Helpline can help with options for payment arrangements with the ATO, creditors, suppliers and service providers, which shows how often these conversations are part of the solution. ([business.gov.au](https://business.gov.au/expertise-and-advice/Small-Business-Debt-Helpline?utm_source=openai))

Keep the conversation short and factual. Say what you can pay, what you cannot pay, and what you are asking for in return. If you need time, ask for time with numbers behind you. A vague promise usually weakens your position, but a clear proposal can preserve relationships long enough to test a restructure properly. That is a practical step, not a guarantee of support. ([business.gov.au](https://business.gov.au/expertise-and-advice/Small-Business-Debt-Helpline?utm_source=openai))

Get advice this week and bring the paperwork

If the business is under strain, get advice this week, not after the next missed payment. Business.gov.au says companies that suspect they cannot pay debts when due should consult a registered liquidator, a specialist insolvency accountant or lawyer, or a financial advice service immediately. The Small Business Debt Helpline is also listed as a free, confidential option for small business owners in financial difficulty. ([business.gov.au](https://business.gov.au/exiting/bankruptcy-and-insolvency/insolvency-for-companies?utm_source=openai))

Bring the balance sheet, cash flow, creditor list, tax lodgements and payroll records. That is the material an adviser needs to test whether a restructure is realistic or whether another path is safer. CRP can coordinate independent qualified professionals to review the position and help you decide the next step. Call CRP today about debt restructuring. This article is general information only and not legal, tax or financial advice. ([legislation.gov.au](https://www.legislation.gov.au/F2001B00274/2025-07-01/2025-07-01/text/original/epub/OEBPS/document_1/document_1.html?utm_source=openai))